reinsurance

As we’ve been reporting for some weeks now, there is increasing evidence in the way catastrophe bonds are pricing that rates for reinsurance and retrocessional coverage from the cat bond market are now coming off the top of the hard market.

The second session of the day at our Artemis ILS NYC 2023 conference, held in New York on February 10th 2023, featured industry leaders discussing the need to build investor confidence in the collateralized reinsurance and private ILS side of the market.

Despite continued uncertainty over the potential for catastrophe events to cause losses to a number of its catastrophe bonds, Everest Re says that as of the end of 2022, no covered events had attached to drive any recoveries under its in-force Kilimanjaro Re catastrophe bonds.

Global reinsurance company SCOR has given an additional signal on the trajectory of US catastrophe reinsurance rates, citing 40% average rate-on-line increases achieved at the April renewals.

Annual aggregate catastrophe bonds sponsored by US primary insurance giant Allstate could come under some pressure, as the firms aggregated annual catastrophe losses across the Sanders Re cat bonds risk period soared to almost $3.67 billion after a heavy March hit from severe storms.

We’ve learned from sources that a number of insurance-linked securities (ILS) fund managers have recently been able to further reduce the size of investment side pockets they had established related to hurricane Ian.

Selective Insurance Group renewed its catastrophe reinsurance tower at 1/1 2023, and this year secured $216 million of fully collateralized limit, the majority of which sits in the top-layer of the program.

Judy Klugman, the Global head of ILS Distribution and Sales at reinsurance giant Swiss Re and a long-standing and well-known leader in the catastrophe bond and insurance-linked securities (ILS) space, is departing the firm at the end of June.

Aspen Capital Markets, the third-party and alternative reinsurance capital management unit of global re/insurer Aspen, had a successful year in 2022, growing its assets under management by 42% to reach $1.3 billion over the twelve months.

The insurance-linked securities (ILS) grant scheme in Singapore has been a significant help in the country attracting catastrophe bonds and other ILS activity and it has now been extended by a further three years, to run until the end of 2025.